DUBAI

Contact Our Consultant +971 552419200

Wednesday, June 13, 2012

A worker who breaches a contract may pay employer

I have been working for a company for more than one year on a limited contract which expires in two months. My question is, in case I revoked the contract, how will the compensation be calculated by the employer? Will it be 45 days from my salary and will it be counted from basic salary of the total salary? Does the employer have the right to ask the Labour Ministry to put a ban for more than six months? And in case he puts a ban, will it be applicable to Free Zone areas? I need to cancel and join a new job because I got a very good offer from a good company. Please clarify.

Article No 116 from the Labour Law indicates the following:Where a contract is revoked by the worker for reasons other than those specified in Article (121), he shall be required to compensate the employer for any prejudice the latter sustains as a result: provided that the amount of compensation shall not exceed half the worker’s remuneration for three months or the residual period of the contract whichever is shorter unless the contract contains a provision to the contrary.

Therefore, if the questioner revoked the contract, he will be violating the mentioned Article and the competent court may ask him to compensate the employer.The compensation amount will be calculated as per the full salary, not basic salary. In addition to that, the employer has the right to ask the Labour Ministry to impose a one-year ban. But this type of ban is not applicable in free zones